U.K. Leading Destination for Offshore Turbine Manufacturers

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The U.K. is closer to becoming the leading European country for offshore wind turbine manufacturing after three major companies committed to building plants in the country this week. Siemens AG (NYSE:SI) (Munich, Germany), General Electric (NYSE:GE) (Fairfield, Connecticut) and renewable energy company Gamesa Corporation S.A. (MCE:GAM) (Vitoria-Gasteiz, Spain) have separately confirmed plans to build turbine-manufacturing plants in the U.K. The announcements follow this week's confirmation from the U.K. government that it plans to spend £60 million ($95 million) to develop the country's ports to allow for rapid deployment of offshore wind projects.

Siemens originally announced its intention to build an £80 million ($126 million) plant for the production of offshore wind turbines in March, when it signed a memorandum of understanding with the previous government. For related news, see March 30, 2010, article - Siemens Picks U.K. For £80 Million Wind Turbine Plant. Siemens has assessed more than 100 ports in that time and has narrowed its search to the east and northeast coast of the country. It plans to produce its new direct-drive offshore wind turbine with a capacity of 6 megawatts (MW) at the new facility.

"We need access to facilities capable of handling large wind turbines," said Jens-Peter Saul, the chief executive officer of Siemens Wind Power A/S. "The next generation 6-MW direct-drive offshore turbines, which will be built at the new U.K. factory, will scale more than 150 metres, taller than Wembley Stadium's arch and higher than the 10th- tallest building in the U.K. We are working closely with the Department of Business, Innovation and Skills and the Department of Environment and Climate Change to progress the port site competition process, and we are looking forward to more details of the next stages in the near future."

The new plant will employ up to 700 people. Siemens Energy has completed offshore wind projects with a combined capacity of more than 1 gigawatt (GW). Half of that capacity is in the U.K.

General Electric, which first revealed plans for a manufacturing plant back in March, has reaffirmed its commitment to setting up a £100 million ($157.92 million) turbine manufacturing facility, as well as design, application and service-engineering resources. "We are very pleased that the U.K. government has recognised the need to invest in ensuring that its port infrastructure can support the manufacturing of next-generation wind turbines," said Jeff Immelt, the chairman and CEO of GE. "The U.K. has ample offshore wind resources that can provide clean energy for the U.K., as well as providing new, high-skill jobs for both GE and our suppliers in the U.K.

Separately, the U.K government's recent commitment to improving the infrastructure for the wind energy sector has led Spain's Gamesa to announce that it will spend 150 million euros ($207 million) to establish is global headquarters for offshore wind in London, as well as a build a turbine manufacturing plant by 2014.

Jorge Calvert, chairman of Gamesa, said: "The U.K.'s resolute decision to enact an ambitious offshore plan, along with the country's support for foreign investment and the availability of large ports--which are essential in this business--convinced us to make the decision to base the global headquarters of our offshore activity in the UK."

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